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04/08/26

Texas halts data center approvals, orders audit

Texas halts data center approvals, orders audit

Houston, 4 August (Argus) — Texas governor Greg Abbott (R) has halted approvals for new data center projects seeking to connect to the state's power grid until regulators complete an audit of the facilities, directing the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to expand its review of all projects advancing through the interconnection process. Under the order made Monday, regulators must collect information on power consumption, water use, on-site generation plans, tax incentives, ownership structures and potential impacts on local communities. Projects that fail to comply with the review must be denied connection to the Texas grid. The order comes as opposition to data center development spreads across Texas and pressure mounts on Abbott to take a tougher stance on the industry. Local governments across the state have pursued moratoriums and proposed new restrictions on data centers, while elected officials from both parties have called for greater scrutiny of facilities' effect on the grid, water supplies and rural communities. Against that backdrop, Abbott's directive expands an ongoing effort by ERCOT and the PUCT to vet large-load projects, broadening the review beyond grid planning to include resource consumption, incentives and local impacts. ERCOT is currently considering approximately 474GW of requests to connect to the Texas grid, more than five times the state's record peak electricity demand, Abbot said. Roughly 90pc of those requests are associated with data centers, according to the governor. "That unprecedented load growth could endanger the reliability and stability of the Texas electric grid," Abbott wrote in the directive. The review is necessary in part because some data centers failed to comply with a state survey measuring water and power usage, he said. He also cited concerns raised during legislative hearings and public meetings regarding the sector's impact on local communities and critical infrastructure. The Data Center Coalition, which represents major data center operators, said it supports the review if it helps distinguish legitimate projects from speculative proposals. "We are hopeful this directive from the Governor will help separate those who are responsible water and energy stewards from those who are not," said Dan Diorio, the group's executive vice president of state policy and government affairs. "With billions of dollars in investment and hundreds of thousands of jobs on the line, we urge the PUCT and ERCOT to move swiftly." Behind the hype Texas officials have been struggling to determine how much of the state's projected load growth is genuine and how much reflects speculative filings, duplicate applications and so-called "ghost load" requests. Regulators have warned that inflated interconnection queues make it difficult to forecast future demand and risk prompting unnecessary spending on generation and transmission infrastructure, potentially saddling consumers with the cost of investments that ultimately prove unnecessary. In an effort to streamline the process, the state launched Batch Zero , which was developed to help separate credible projects from speculative proposals by imposing stricter requirements on large-load customers. Under the framework, projects seeking 75MW or more that meet certain financial commitments are grouped into a single system-wide study intended to identify which projects are prepared to move forward and what transmission infrastructure may be required to serve them. In a notice to market participants Monday, ERCOT said it was pausing the process and would not issue the 7 August classifications scheduled under the study, delaying a key milestone that would have informed developers whether their projects had been selected for evaluation in the first batch. "ERCOT is reviewing governor Abbott's letter concerning data centers and will work with the Public Utility Commission of Texas to implement the governor's directive, including postponement of the Batch Zero transmission planning study," the grid operator said. ERCOT said it would consult with the commission on next steps before the PUCT's 20 August open meeting. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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E-methane offers fastest route to market: Arctic Sisu


04/08/26
News
04/08/26

E-methane offers fastest route to market: Arctic Sisu

E-methane was the pragmatic choice for Arctic Sisu's Kotka project, which could launch in 2030, writes Pamela Machado Paris, 4 August (Argus) — Finland's Arctic Sisu has chosen e-methane as the first product in its Power-to-X strategy, arguing that it offers a faster and lower-risk route to market than other hydrogen derivatives. In contrast to many other developers, the firm has switched from a phased-development approach for its first plant to advancing full-scale plans from the get-go and has been able to revise down cost estimates. Arctic Sisu is advancing plans for a large e-methane project in Kotka , in southeast Finland, and sees the fuel as the most commercially viable entry point for hydrogen derivatives, chief engineer Antti Pohjoranta tells Argus . The project is designed to produce 56,100 t/yr of renewable hydrogen and convert it into 113,100 t/yr of e-methane using biogenic CO2 captured from neighbouring paper producer MM Kotkamills. Arctic Sisu plans to source renewable electricity from Finnish assets through power purchase agreements. The company recently decided to develop the project in a single phase rather than in stages — a move intended to improve economics and reduce execution risk. "There is enough demand to justify building the plant in one go," Pohjoranta says. The project requires substantial electricity infrastructure, including a major grid connection, and much of that infrastructure would need to be built at full scale even under a phased approach. The company already has an offtaker for the project, although the details are confidential. Power-to-X, as the hydrogen derivatives sector is often known, is a "really diverse and broad" market that presents opportunities to decarbonise activities ranging from shipping and steelmaking to chemicals production, Pohjoranta says. But Arctic Sisu deliberately focused on the application with what it views as the clearest near-term commercial case. E-methane can already be deployed in existing gas infrastructure and end-use applications, avoiding many of the challenges facing newer-fuel value chains. "We find it the most cost-effective and pragmatic approach at this point in time," Pohjoranta says. Stepping stone Arctic Sisu acknowledges criticism that methane remains a greenhouse gas and could eventually lose market share to electrification or alternative fuels in the future. But the firm believes the market opportunity for renewable methane will persist long enough to justify investment in Kotka. The company also sees e-methane as a stepping stone towards broader PtX opportunities and an opportunity to learn about new technologies and supply chains. The Kotka project is currently progressing through Finland's permitting process following completion of its environmental impact assessment. Arctic Sisu is targeting a final investment decision by mid-2027, subject to successful permitting and project development, with commercial production expected in 2030. Capital expenditure is now expected to be in the €500mn-600mn range, suggesting it could stay below earlier estimates of around €600mn for the full plant. Pohjoranta says equipment suppliers, technology licensors and engineering firms have become more experienced in hydrogen and Power-to-X developments, helping to reduce project costs and improve confidence among investors. Arctic Sisu's upbeat view comes as signs of increased interest from offtakers begin to emerge. Finnish developer Ren-Gas recently announced an agreement to supply e-methane to fuel companies in Germany for distribution to heavy-duty trucks, driven by quotas for use of renewable hydrogen derivatives in transport. Even so, most e-methane plans remain at an early stage. Most announced projects have yet to reach a final investment decision, and even firmer demand signals will be needed on the path to wider adoption. Kotka, Finland Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Kuwait's KPC drops August sulphur price by $85/t


04/08/26
News
04/08/26

Kuwait's KPC drops August sulphur price by $85/t

London, 4 August (Argus) — Kuwait's state-owned sulphur producer KPC has set the August Kuwait Sulphur Price (KSP) at $865/t fob Kuwait, down by $85/t from the July KSP of $950/t fob. Freight rates as of 30 July were $140-145/t for a 30,000-35,000t shipment to Chinese ports. This implies a delivered cost of $1,005-1,010/t cfr, although additional insurance premiums are raising prices further on a delivered basis. Additional costs are said to be as much as $200/t for a 30,000-35,000t vessel, accounting for both freight and additional insurance premiums payable for those vessels willing to accept a higher risk of entering the strait of Hormuz, implying a delivered cost as high as $1,065-1,070/t cfr China. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Abu Dhabi's Adnoc rolls over August sulphur price


04/08/26
News
04/08/26

Abu Dhabi's Adnoc rolls over August sulphur price

London, 4 August (Argus) — Abu Dhabi's state-owned Adnoc has rolled over its August sulphur official selling price (OSP) for the Indian subcontinent at $1,000/t fob Ruwais, stable on its July OSP. Adnoc's August OSP implies a delivered price of $1,140-1,142/t cfr India, with the freight cost for a 40,000-45,000t shipment to the east coast of India last assessed at $140-142/t on 30 July. Shipping costs have increased by $35/t since the July price was set, following the collapse of the US-Iran ceasefire deal, translating to a corresponding increase in delivered prices implied by the fob level. Additional costs such as insurance premiums, on top of higher bunker costs, could elevate delivered price levels further. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Aramco profit up, export capacity unmoved: Update


04/08/26
News
04/08/26

Aramco profit up, export capacity unmoved: Update

Updates throughout London, 4 August (Argus) — State-controlled Saudi Aramco posted robust second quarter results today, as higher oil prices offset most of the impact of output losses resulting from the US-Iran war. The firm said attempts by Yemen's Houthi rebels to disrupt shipping in the Red Sea have not affected its export capacity. Aramco reported an adjusted net income of $33.39bn in the second quarter, up by $8.2bn on the same period last year and down by $411mn on the first quarter, and exceeding the $31.59bn median of analysts' forecasts. Aramco's total hydrocarbons production fell to 9.463mn boe/d in the second quarter from 12.780mn b/d of oil equivalent (boe/d) in the second quarter of last year and 12.614mn boe/d in the first quarter as it was forced to shut in much of its oil output due to the effective closure of the strait of Hormuz. The US-Iran war and the effective closure of the strait of Hormuz has forced most Mideast Gulf countries to curtail their oil and gas output. For Aramco, liquids output posted the biggest decline, falling to 7.57mn b/d in April-June from around 10.48mn b/d a year earlier and 10.56mn b/d in the previous quarter. Gas production fell to 9.92bn ft³/d in the second quarter of this year, from 11.85bn ft³/d a year earlier and 10.51 ft³/d in Jan-March 2026. Saudi Arabia exported most of its oil through the strait of Hormuz before the US-Iran war began. But it has been able to sustain a large part of its exports by diverting crude through its 7mn b/d East-West pipeline to the Red Sea terminal on Yanbu, which bypasses the key waterway. But recent attempts by the Houthis to blockade Saudi maritime trade have put these lifeline exports at risk. Saudi crude exports from Yanbu fell by 470,000 b/d on the month to 3.67mn b/d in July, Kpler data show, with more volumes heading north towards Egypt instead of south through the Bab el-Mandeb strait. Saudi Aramco chief executive Amin Nasser said today that the Bab el-Mandeb events had no impact on the firm's export capability. He said said Aramco continued to capitalise on all available routes from Yanbu, including the Bab el-Mandeb, Egypt's Suez Canal and the 2.5mn b/d Sumed pipeline which facilitates exports from the Egypt's Ain Sukhna port into the Mediterranean. Aramco also confirmed that some of its facilities were targeted in attacks in the second quarter and more recently in July . But while Nasser said these caused some disruptions, the impact was not material to the company's finances or operations. Production capacity intact Naser said that Aramco would be able to bring crude production back to pre-war levels within days and up to its 12mn b/d maximum sustainable production capacity within three weeks. Saudi Arabia produced 10.88mn b/d of crude in Feburary, the last normal month of production before the US-Iran war, according to Argus estimates. He also said that any damage resulting from the conflict would be absorbed by its existing capital expenditure plan for the year of $50bn-55bn. "The current conflicts did not impact whatsoever our activity with regard to our long-term plans," Nasser said. Aramco said it continued to advance projects to maintain its 12mn b/d crude production capacity in the second quarter. This included the 600,000 b/d Zuluf project, which is expected online in 2026, and the 50,000 b/d second phase of the Dammam project, expected in 2027. Higher oil prices helped cushion some of the blow from the company's inability to freely export oil from inside the Mideast Gulf. Aramco sold its crude at an average of $108.1/bl in the second quarter, up from $76.9/bl in the first quarter and $66.7/bl in the same period in 2025. Revenues rose to $139.15bn, from $124.60bn in the first quarter and from $108.6bn a year earlier. Aramco's board kept its base dividend relatively unchanged at $21.9bn in the second quarter, which will be paid in the third quarter. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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